Dip, rebound: A Teflon resilience in markets that won't let declines stick

Investors who bought the dip since 2022 have reaped bigger returns from sharper rebounds

After entering ‘correction territory’ — a drop of 10 per cent from recent highs — the domestic markets have rebounded sharply, despite ongoing concerns about slowing earnings, economic growth, and high valuations. Since their recent lows on November 21, the benchmark National Stock Exchange Nifty 50 Index has risen by 6.1 per cent, the broader Nifty Midcap 100 has climbed 8.5 per cent, and the Nifty Smallcap 100 has surged 10.3 per cent.

 

Despite predictions of prolonged weakness from several experts, the smallcap index has reached new highs. This is not the first time a steep decline has been followed